Gold Prices Spike Following Disappointing ADP Employment Data
( Kitco News) – The gold market jumped higher with prices well above $ 1[ads1],400 and private sector employment grew more than expected in June, according to private payrolls company ADP. 19659003] Wednesday, ADP said that 10,000 jobs were created in June, missing expectations; consensus forecasts were calling for job growth of 140,000. Private sector employment has been expected to be four out of the last five months.
Gold prices were showing strong gains ahead of the report and spiked higher in initial reaction. August gold futures lasted at $ 1,424.10 in an ounce, up more than 1% on the day.
, which significantly missed expectations the previous month. However, economists continue to note that ADP data is not a consistent predictor for nonfarm payrolls.
Adam Button, managing director of Forexlive.com, said that the latest employment data provides further support for a Federal Reserve rate cut by the end of the month.
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